Paragon Technologies Board Sued Over ‘Coup’ by Ousted Chairman

Two Paragon Technologies Inc. directors staged a board “coup,” forced out its chairman, and adopted illegal bylaws insulating them from the ordinary levers of corporate governance, according to a lawsuit unsealed Friday.

Hesham Gad is suing Samuel Weiser and Jack Jacobs over his ouster and the bylaws, which place a series of restrictions on the ability of investors to remove them from the board through ordinary channels. The “obvious invalidity” of the bylaws “is breathtaking,” the suit says.

The allegations represent a reversal of roles for the investment holding company, which earlier in the year led litigation challenging Ocean Power ...